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Axcelis Technologies and Veeco Instruments have secured shareholder approval for their previously announced merger, intended to create a major entity in the semiconductor equipment industry, valued at approximately $4.4 billion.
This all-share transaction is expected to be completed in the second half of 2026.
Initially announced in October 2025, the merger is expected to create a strong market presence by combining the strengths of both companies.
Axcelis, headquartered in Beverly, Massachusetts, has been providing solutions for the semiconductor industry for over 45 years. The company specializes in designing, manufacturing and supporting ion implantation systems, which are crucial in the integrated circuit manufacturing process.
Veeco, based in Plainview, New York, is engaged in manufacturing semiconductor process equipment, including technologies such as laser annealing, ion beam deposition and metal organic chemical vapor deposition (MOCVD). These technologies play a key role in the manufacturing and packaging of advanced semiconductor devices.
The valuation of the combined entity is derived from the share prices of Axcelis and Veeco on September 30, 2025, together with existing debts as of June 30, 2025.
Both Axcelis, which trades on Nasdaq as ACLS, and Veeco, which trades as VECO, held special meetings where shareholders voted in favor of the merger proposals. The results of these votes will be reported in a Form 8-K filed with the US Securities and Exchange Commission by each company.
Under the terms of the deal, Veeco shareholders will receive 0.3575 Axcelis shares for each Veeco share. Upon completion, Axcelis shareholders will own 58% of the combined company, while Veeco shareholders will own approximately 42%.
Aiming to increase market reach, the merger will integrate complementary technologies from both companies, potentially expanding their total addressable market to more than $5 billion. This expansion is largely driven by the growth of AI and demands for related energy solutions.
In addition, the combined company will diversify its technology offerings and market segments to better support customer advancements, becoming the fourth largest in the United States. wafer manufacturing equipment supplier by revenue.
The financial benefits of the merger include anticipated revenue synergies through technology integration and cross-selling opportunities.
Axcelis and Veeco expect annual cost synergies of $35 million in the two years following closing, with a substantial portion realized in the first year. On a pro forma basis for fiscal 2024, the combined company is expected to have generated revenue of $1.7 billion with a non-GAAP gross margin of 44%, along with adjusted EBITDA of $387 million.
